Redfin is being acquired in an all-stock transaction that values the actual property itemizing platform at $1.75 billion.
The buying firm is Rocket Companies, a Detroit, Michigan-based finance and actual property holding agency that operates numerous manufacturers together with Rocket Mortgage, Rocket Cash (previously Truebill), and Rocket Loans.
“Rocket and Redfin have a unified imaginative and prescient of a greater method to purchase and promote properties,” Rocket Corporations’ CEO Varun Krishna stated in a statement. “Collectively, we’ll enhance the expertise by connecting historically disparate steps of the search and financing course of with main expertise that removes friction, reduces prices and will increase worth to American homebuyers.”
Based out of Seattle in 2004, Redfin serves a residential actual property brokerage platform for the U.S. and Canadian markets. The self-proclaimed “Amazon of actual property” went public in 2017, and its shares usually traded flat at round $20 within the subsequent few years. However as with many tech firms, Redfin soared throughout the pandemic, with its inventory hitting an all-time excessive of $96 in early 2021, earlier than plummeting to beneath $10 for a lot of the previous three years.
Redfin’s shares had fallen greater than 30% prior to now couple of weeks, after its Q4 2024 earnings missed estimates, whereas the corporate additionally supplied weak steerage for the present quarter.
Rocket Corporations, for its half, went public in 2020, and right now has a market cap of $31 billion. The corporate’s proposed bid of $12.50 represents a 63% premium over Redfin’s quantity weighted common worth (VWAP) for the month main as much as March 7, 2025. The supply entails exchanging 0.7926 shares of Rocket Corporations’ Class A inventory for every share of Redfin widespread inventory, with Rocket Corporations shareholders proudly owning 95% of the brand new mixed entity and Redfin shareholders proudly owning 5%.
Whereas each boards of administrators have already permitted the transaction, it does nonetheless require Redfin’s shareholders to rubberstamp the deal, which Redfin says it expects to occur in Q3, 2025. Redfin CEO and President Glenn Kelman, who has led the corporate since 2005, will proceed on the helm of Redfin, reporting on to Krishna.